In the News
Chippewa Valley Ethanol Company
Apr 15, 2021
Benson, MN - April marks the 25th Anniversary for Chippewa Valley Ethanol Company (general partner to Chippewa Valley Agrafuels Coop). This milestone is something to be celebrated as CVEC continues on its mission to generate distributions to our members by engaging in opportunities to increase the value of agriculture production.
“In 1992 and ’93, the chances of profit were maybe a nickel per bushel or less and I thought, ‘We have to get something to process it and get in the end-game’..... ethanol is not only fuel. It’s food, it’s oil, it’s feed, dried distillers .... for those that believed in it, we’ve done very, very well and gotten good returns.” Janet Lundebrek, CVEC Board Member
This milestone comes in the wake of many accomplishments of the company over the last 25 years, including:
- Reducing energy consumption by 36%
- Grown production capacity to over 50 million gallons per year
- Innovation through diversity of products including distillers grains, corn oil and industrial alcohol
“If the station I pull into has E-85 available, that’s what goes into my vehicle. The more E-85 we can sell, the more profitable the plant can be, the more money they can pay back to their shareholders and more they can try to use to buy more crops to expand and benefit everyone in the community” says Tom O’Leary, CVEC Board Member
About Chippewa Valley Ethanol Company: CVEC was founded 25 years ago by a local farmer and electric co-op manager looking to add value to area corn while stabilizing electricity rates. They had a vision to process corn into ethanol that would impact the environment and surrounding economies in a positive way. Since 1996, CVEC has grown to over 900 member owners, produces 50 million gallons of ethanol per year, reduces energy consumption annually, and is recognized at both state and federal levels for efficient production and leadership in shaping ethanol policy.
Read the original press release here.
Apr 15, 2021
Projected U.S. corn supplies are still waning toward multi-year lows despite dragging ethanol output, though recent production and demand figures along with an upbeat outlook for the summer driving season should instill some optimism over the corn-based biofuel.
In the four weeks ended April 9, U.S. ethanol output averaged 951,000 barrels per day, off the recent highs observed in November and December and 6.6% below the 2017-2019 average for the same period. That departure from normal is a post-pandemic best.
The latest production average reflects a slight downturn from the late March levels, somewhat consistent with seasonal trends for the time of year.
Ethanol output first diverged from typical levels in late March 2020 due to the onset of the coronavirus pandemic, so year-on-year comparisons should no longer be made. The three years prior to 2020 provide a good baseline for “normal” since they contain one strong, one weaker and one average year of production.
With demand recently outpacing production, U.S. ethanol stocks have fallen to seven-year lows for the date. Stocks totaled 20.5 million barrels as of April 9, down nearly 16% in two months. Trends in gasoline demand track well with ethanol output since almost all U.S. gasoline is blended with the biofuel. Last week, finished motor gasoline supplied to the market averaged 8.94 million barrels per day, the second-best week in the virus era. In the latest four weeks, gas demand was just 6% below the pre-virus average, the smallest post-pandemic margin.
Americans are itching to get out this summer after largely missing out on vacations in 2020. Travel spending by Americans last year plunged an estimated 42% and U.S. driving fell by 13% to its lowest level since 2001. U.S. passenger airline traffic dropped 60% to the lightest since 1984.
But the vaccination progress and an increase in travel bookings are already setting up a much busier summer. American Airlines said on Wednesday it expects to fly more than 90% of its domestic seat capacity in the summer of 2021 based on a boost in reservations.
By Wednesday, more than 37% of Americans had received at least one dose of a coronavirus vaccine and 23% had been fully inoculated, according to the Centers for Disease Control and Prevention. The pace of vaccinations has been increasing, but 70% of the population could be vaccinated by early June at the current rate.
DEMAND BOOST
Last week, the U.S. Department of Agriculture increased its 2020-21 corn use for ethanol estimate by 25 million bushels to 4.975 billion bushels, up 2.4% from 2019-20’s seven-year low.
On average, that forecast is down 9% from the previous three uninterrupted marketing years starting with 2016-17. Since the start of the current marketing year on Sept. 1, weekly ethanol production has averaged about 9.5% below the same period in those three years.
That indicates that ethanol output does not have to make a huge recovery going forward to meet expectations. In fact, if output through August maintained its recent 6-7% deviation from the previous years, corn use for ethanol could possibly rise by 25 million to 50 million bushels over USDA’s latest 2020-21 peg.
Good prospects for summer travel increase the odds for ethanol output and demand to inch even closer to normal levels into mid-year, though next year’s volumes are subject to greater debate as the economy continues to recover from the pandemic.
USDA in February tentatively slated 2021-22 corn used for ethanol at 5.2 billion bushels, down about 5% from pre-virus levels, though the agency will issue a fresh assessment next month. Any increase in this number will amplify pressure to new-crop corn supplies, which could be even smaller than the seven-year low predicted for 2020-21.
Read the original column here.
Apr 9, 2021
The USDA increased its forecast for 2020-’21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released on April 9. The outlook for feed and residual use was also increased.
The USDA said the forecast for feed and residual use is raised 50 million bushels to 5.7 billion based on corn stocks reported as of March 1, which indicated disappearance during the December-February quarter increased about 6 percent relative to a year ago.
Corn used to produce ethanol is raised 25 million bushels based on the most recent data for the USDA’s Grain Crushings and Co-Products Production report, and the pace of weekly ethanol production during march as indicated by U.S. Energy Information Administration data.
The USDA now predicts 4.975 billion bushels of corn will go to ethanol production in 2020-’21, up from the agency’s March forecast of 4.95 billion bushels. An estimated 4.857 billion bushels of corn went to ethanol production in 2019-’20, down from 5.377 billion in 2018-’19.
The outlook for corn exports is increased by 75 billion bushels based on export inspection data for the month of March that was the largest monthly total on record, surpassing the previously high set in November of 1989.
The season-average farm price is unchanged at $4.30 per bushel, as reported prices through February indicate much of the crop was marketed at lower prices.
Globally, corn production is raised for Pakistan, the EU-27+U.K. and Ecuador, with partly offsetting reductions for Argentina and Indonesia.
Major global trade changes include lower forecast corn exports for Ukraine, based on shipment data to date. Corn imports are raised for Bangladesh. Foreign corn ending stocks are essentially unchanged from last month, mostly reflecting increases for South Korea and Pakistan that are offset by a reduction for Saudi Arabia.
Read the original story here.
April 9, 2021
Today, Governor Tim Walz and supporters of Minnesota’s biofuels industry urged the passage of the Governor’s Biofuels Infrastructure Grant Program budget proposal in order to strengthen small businesses, support farmers, and reduce greenhouse gas emissions.
Minnesota’s COVID-19 Recovery Budget, the Governor’s biennial budget proposal, includes an investment of $2 million per year to fund the Biofuels Infrastructure Grant Program to increase access to ethanol and biodiesel across the state. These grants would give service station owners across Minnesota funding to install the equipment needed to ramp up use of higher blends of biofuels, such as E15 (gas that is 15% ethanol), E30 (30% ethanol), and E80 (80% ethanol).
“Biofuels are critical to Minnesota, not just for helping us meet our climate goals, but to our agricultural and rural economies and the state’s economy as a whole. However, many gas stations don’t have the tanks, pumps, and other equipment needed to safely dispense E15 to consumers,” said Governor Walz. “The biofuels infrastructure grants would help retailers make these upgrades, and in doing so, these grants support our farmers and reduce greenhouse gas emissions across Minnesota.”
Governor Walz highlighted the proposal today at Holiday Stationstore #3829 in New Hope. Owner Chris Robbins received a state grant enabling him to upgrade his facility to offer E15, E30, and E85 fuels.
“E15 has been a huge success for our location,” said Robbins. “It is cheaper for consumers, it supports a home-grown, renewable resource and our Minnesota economy, it reduces our dependence on foreign oil, and it reduces harmful greenhouse gases.”
Conventional corn-starch ethanol can reduce greenhouse gases (GHGs) by as much as 48 percent compared to gasoline; advanced biofuels made from feedstocks such as cellulose can reduce GHGs even more.
Minnesota’s ethanol industry generated $4.4 billion in revenue in 2020 and supports nearly 14,500 jobs – including an estimated 3,600 jobs in agriculture and 3,900 jobs indirectly supported in the corn production supply chain.
Minneapolis, April 6 - The Minnesota Bio-Fuels Association (MN Bio-Fuels) and Chippewa Valley Ethanol Company (CVEC) hosted a virtual plant visit for 20 students from Ridgewater College on April 1.
During the plant visit, the students, from the college’s Animal Nutrition class, were given a virtual presentation on the plant’s operations, facts on the ethanol industry, and shown videos on the ethanol production process and the ethanol industry’s economic impact in Minnesota.
“Corn is a solar panel that exists right outside our windows. It captures carbon, utilizes it to create block-chain sugar and other energy. We convert that back into liquid energy that we can utilize in our transportation fuel,” said Chad Friese, CEO of CVEC during the virtual tour.
He said CVEC sources 17 million bushels of corn from local farms within 20 to 25 miles of the plant each year to produce 50 million gallons of ethanol and 140,000 tons of dried distillers grains with solubles (DDGS) annually.
“This is corn that is grown for feed use and we’re taking that corn, making ethanol and providing a feed product. A corn kernel is about 8 - 10 percent protein. The process concentrates those nutritional parts so DDGS end up at about 27 - 28 percent protein. So, it’s a more efficient feed at relatively the same cost as corn itself. We grind it, we triple its nutrition value and give it back to the feeder,” Friese explained to the students.
In addition, he said CVEC produces industrial grade alcohol for products such as sanitizers and disinfectants.
“This tour provided the students a better idea of the importance of the ethanol industry to Minnesota’s economy and how it reduces harmful greenhouse gas emissions,” said Tim Rudnicki, executive director for MN Bio-Fuels.
Kari Slinden, agriculture technology instructor at Ridgewater College, participated in the virtual tour with her students.
“Ridgewater College Animal Nutrition students benefited from the CVEC virtual tour by learning more about the ethanol producers and by-products produced. Many students feed their livestock DDGS or wet cake products, so it was good to know how they are made and the components in the feed,” said said.
Mar 31, 2021
U.S. ethanol production increased by nearly 5 percent the week ending March 26, according to data released by the U.S. Energy Information Administration on March 31. Fuel ethanol stocks were down more than 3 percent.
Ethanol production for the week ending March 26 averaged 965,000 barrels per day, up 43,000 barrels per day when compared to the 922,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was up 125,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 21.114 million barrels the week ending March 26, down 695,000 barrels when compared to the 21.809 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 26 were down 4.603 million barrels.
Read the original story here.
Mar 25, 2021
From electric vehicle chargers (EVC) to biodiesel and ethanol blends, convenience retailers are working to provide customers with the fuel and fuel alternative options they need, while looking forward to increased demand as vaccines roll out.
Ankeny, Iowa-based Casey’s General Stores’ fuel offer varies by location, said Tony Spuzello, manager of commercial fuels for Casey’s. But its new stores offer five products: E15, E85, E10, a premium gasoline option and diesel.
“This will be a standard for Casey’s as we build new locations and look to remodel existing fuel island locations,” Spuzello said. “Biodiesel and higher blends of ethanol are a part of the demand equation and help to offer consumers a choice while also helping them save money compared to non-blend petroleum products.”
In states along the West Coast, he’s seeing a rise in demand for renewable diesel as well as renewable diesel-biodiesel blends. Other states closer to the Midwest are continuing to look at low-carbon programs, he said, which may shift renewable products closer to where they’re produced.
Meanwhile, Sunshine Gasoline President Maximo Alvarez Jr. said the 350-store Florida chain partnered with retail tech company GetUpside to learn more about its customers’ fuel preferences and behaviors and drive new customers. Before the pandemic, GetUpside was driving around 2.5% of all Sunshine’s Chevron volume, he said. Since April 2020, it’s increased to close to 5%.
Ultimately, Sunshine Gasoline aims to stay competitive on price, Alvarez said, as well as customer service and cleanliness.
Summer Season
Brandon Lawrence, founder of Fuel Insight, a data science consultancy, noted a chain’s in-store offer will continue to prove increasingly important this year, too.
“The biggest shift that we’ve seen is that volume is no longer king,” he said. “The pandemic showed that a strong inside offer can be a lot more resilient.”
Casey’s has seen success with its in-store offer, Spuzello said, and its Casey’s Rewards program, both of which help to keep the chain top-of-mind when it comes time to purchase fuel.
“As we recover from COVID, we hope to see fuel demand improve as we get into the summer of 2021,” he said.
Lawrence, too, is cautiously optimistic for a strong summer and overall year ahead.
“We’re at a turning point, a fork in the road,” he said. “Either things are going to get much better, or they’re going to get worse. But I err on the side of bullish on this one. I think we’re going to have a very strong year. I don’t think it’s going to be as strong as 2019, but maybe 3% or 4% down.”
And while the regulatory environment will play a bigger role than ever before, “When it comes to electric,” he said, “I don’t think it’s a matter of if; it’s a matter of when.”
Read the original story here.
Mar 26, 2021
Canada imported 1.23 billion litres of the biofuel in 2020, topping Brazil’s 757 million litres and India’s 719 million litres, according to the Renewable Fuels Association.
Guess who has overtaken Brazil to become the top export market for United States ethanol?
“Our top trading partner right now is Canada, our friends to the north,” Growth Energy chief executive officer Emily Skor said in a recent webinar.
Canada imported 1.23 billion litres of the biofuel in 2020, topping Brazil’s 757 million litres and India’s 719 million litres, according to the Renewable Fuels Association.
The move up the ranks wasn’t because Canada imported a bunch more of the fuel than usual. In fact, volumes were nearly identical to the previous year.
It was due to plummeting sales to Brazil, which fell by 40 percent due to the pandemic as well as the country introducing a tariff and a tariff rate quota on imported product.
Skor said U.S. ethanol sales to China have also dropped due to a trade war, while exports to customers in the Arabian Gulf have plummeted due to lower blending economics.
But sales to Mexico have doubled because of higher demand from the country’s industrial sector, while shipments to India have benefited from the country’s six percent ethanol blend rate.
Skor said there would be enormous opportunities if other countries around the world shifted to a 10 percent ethanol mandate (E10) like the U.S.
That would result in an estimated 20 billion litres of new demand for U.S. ethanol, with China leading the way with 5.7 billion litres of that demand.
She said Canada is a great example of a country that could be moving in that direction.
“They are working on a Clean Fuel Standard to move the national to an E15 blend by 2030,” said Skor.
Chris Bliley, senior vice-president of regulatory affairs with Growth Energy, said there are still a lot of details that need to be worked out with Canada’s CFS but boosting the federal ethanol mandate is on the table.
“E15 is certainly one of the compliance options being modelled,” he said.
Even if Canada moved to an E10 mandate, that would create the potential for an additional 2.46 billion litres in annual imports from the U.S., according to a Growth Energy analysis.
Not much ethanol flows the other way across the 49th parallel. The U.S. imported just 82,590 litres from Canada in 2020.
Skor also spoke of new threats and opportunities in the U.S. market that have emerged since the inauguration of President Joe Biden.
“We have seen since Jan. 20, the public and the policy dialogue around climate has just exploded,” she said.
There have been executive orders and major announcements by companies regarding the climate file.
Some of those announcements pose a threat to the ethanol industry, such as General Motors pledging to completely phase out vehicles using internal combustion engines by 2035.
Skor said the question she gets the most is how big of a threat electric vehicles are to the ethanol sector.
She said even under the most aggressive projections for electric vehicles, the internal combustion engine will still be the most dominant type of engine by 2040.
In the meantime, biofuel is the most immediate and practical solution for reducing greenhouse gas emissions.
Growth Energy estimates that a move to an E15 mandate from an E10 in the U.S. marketplace would reduce carbon dioxide emissions by 17.62 million tonnes, the equivalent of taking 3.85 million cars off the road each year.
“That’s something that we can do today,” said Skor.
She said women, millennials and people living on the East Coast of the U.S. are the most likely to buy E15 fuel and should be the target of ethanol advertising campaigns.
Read the original story here.
More...
Mar 24, 2021
The USDA on March 24 announced its intent to provide COVID-19 relief to biofuel producers as part of its USDA Pandemic Assistance for Producers initiative, which aims to distribute relief resources more equitably.
The USDA said it is establishing new programs and efforts to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. The new initiative aims to reach a broader set of producers than in previous COVID-19 aid programs.
The agency said it will dedicate at least $6 billion towards the new programs. It will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Rulemaking, where required, will commence this spring, according to the USDA.
“The pandemic affected all of agriculture, but many farmers did not benefit from previous rounds of pandemic-related assistance. The Biden-Harris Administration is committed to helping as many producers as possible, as equitably as possible,” said Agriculture Secretary Tom Vilsack. “Our new USDA Pandemic Assistance for Producers initiative will help get financial assistance to a broader set of producers, including to socially disadvantaged communities, small and medium sized producers, and farmers and producers of less traditional crops.”
Read the original story here.
March 18, 2021
As fuel demand begins its recovery around the world, the U.S. Grains Council (USGC) is taking steps to ensure ethanol will continue to expand as a part of policy solutions that address greenhouse gas (GHG) emissions and offer a comprehensive portfolio of other benefits including air quality improvement and economic value.
USGC’s ethanol team and consultants offered an update this week to the Council’s Ethanol Advisory Team (A-Team), the member-driven group of grain producers and agribusiness representatives that identify opportunities, set priorities and chart the course of the Council every year, giving them background on ethanol’s role in the Paris Agreement, explaining what it means to have the U.S. rejoin and presenting an outlook for ethanol as it relates to the Paris Agreement as whole.
The U.S. has officially rejoined the Paris Agreement, and like other countries that have made the same commitment, the U.S. will have to submit Nationally Determined Contributions (NDC) that inform the country’s direction toward its goals as it updates its targets.
“Other countries are doing the same, drawing on the overall GHG emissions abatement that has occurred across various sectors,” said Brian Healy, USGC director of global ethanol market development, when he addressed the group. “Since its inception during COP21 [21st Conference of Parties to the United Nations Framework Convention on Climate Change], several countries have initiated expanded national ethanol policies that were directly implemented to meet their NDCs – Brazil’s RenovaBio and Canada’s Clean Fuel Standard (CFS) are two examples that come to mind.”
As many countries have listed their transportation sectors and named biofuels or ethanol specifically to contribute to overall emissions reductions outlined in the Paris Agreement, the case can be made for U.S. ethanol to help meet these countries’ global initiatives.
“The UK is the most recent example of another market moving in the direction of higher ethanol blends to decarbonize their transport fuels,” Healy said. “The global momentum in this space continues with ethanol readily available as an immediate abatement solution – one in which the U.S. has a role.”
The question at play is not only what U.S. ethanol’s role will be in meeting the U.S. and other countries’ Paris Agreement commitments, but also how.
“Even with policies in place some countries are not meeting the intended goals or mandates, leaving room for further GHG emissions reductions. India for example has recently announced its national plan to blend 20 percent ethanol nationwide by 2025. In the most recent market year, it blended just above a 5 percent rate from a nationwide average standpoint. Filling in that blend gap will be critical to fully realize these benefits,” Healy said. “Identifying these gaps and demonstrating the benefit and how to fill them is an ongoing role the Council provides with its global partners.”
For instance, new research from Environmental Health and Engineering Inc. demonstrates that U.S. corn-based ethanol cuts GHG emissions by 46 percent, providing benefits nationally, but also globally, as ethanol trade expands. In terms of emissions reductions, this means the U.S. saved more than 4 million metric tons of carbon dioxide equivalent in 2020 from ethanol exports alone and could provide other countries a pathway to meeting their own Paris Agreement commitments.
“Elevating the contribution that ethanol has already made to abate emissions globally is critical,” Healy said, “and these reductions are expected to continue as further investment in abatement technologies take place and policies expand around the globe.”
Mar 17, 2021
U.S. ethanol production was up nearly 4 percent the week ending March 12, according to data released by the U.S. Energy Information Administration on March 17. Fuel ethanol stocks were down more than 3 percent.
Ethanol production for the week ending March 12 averaged 971,000 barrels per day, up 33,000 barrels per day when compared to the 938,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was down 64,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 21.34 million barrels the week ending March 12, down 730,000 barrels when compared to the 22.070 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 12 were down 3.258 million barrels.
Read the original story here.
Mar 16, 2021
Using Market Access Program funds, the U.S. Grains Council sponsored a joint Vietnamese ministry and U.S. industry ethanol conference in Ho Chi Minh City in the fall of 2018 to share information on the country’s new E5 ethanol–gasoline blend mandate policy, the advantages of increased ethanol usage and ethanol marketing to consumers.
More than 200 representatives participated, including officials from the Vietnamese government’s ministries of finance and industry and trade, petroleum trading and petroleum distributors, private sector enterprises, the U.S. government, and the press.
The conference was a direct follow-up activity from the Ethanol Summit of the Asia–Pacific, held in May 2018, and in preparation for a post-tour to Nebraska associated with the Global Ethanol Summit, held in October 2019.
Vietnam is the fastest-growing economy in Southeast Asia thanks to the increasing population, urbanization and rapid economic growth. Total gasoline consumption in the country is expected to grow by nearly 15 percent by 2022. Vietnam started offering E5 on Jan. 1, 2019, with a goal to move to E10 by 2020. By that time, Vietnam could represent a 225-million-gallon ethanol market at an E10 blend rate, equivalent to roughly 80 million bushels of corn.
The Council’s work – in partnership with domestic ethanol industry partners – is already starting to pay off in sales as the Vietnamese fuel industry expands. After importing no U.S. ethanol for the last four marketing years, Vietnam has imported more than 3.5 million gallons of U.S. ethanol in the 2018/2019 marketing year, valued at $4.9 million.
The Council invested $130,000 of MAP funds to promote U.S. ethanol exports to Vietnam, resulting in a return on investment (ROI) of $37 for every $1 of MAP funding invested.
Read the original story here.
Mar 15, 2021
WASHINGTON, D.C. - Today, U.S. Senator Tina Smith (D-Minn.) announced that she has been named Chair of the Rural Development and Energy Subcommittee, which is tasked with overseeing many U.S. Department of Agriculture (USDA) Rural Development programs, including the Rural Housing Service, and programs relating to facilities, utilities, loans, and renewable energy.
In addition to her role as Chair, Sen. Smith will also serve on the Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security Subcommittee, and the Commodities, Risk Management, and Trade Subcommittee, as part of her role on the Senate Agriculture Committee.
"By traveling to rural and Tribal areas across Minnesota, I know that in order for these communities to create jobs and strengthen rural communities, we need to support infrastructure," said Sen. Smith. "As Chair of the Rural Development and Energy Subcommittee, I will keep working to strengthen clean energy and clean energy jobs, access to affordable electricity and water systems, and advocate for funding that supports rural businesses and rural affordable housing, boosts local development, and promotes trade that benefits rural areas. I'm also looking forward to the work my colleagues and I will do on the Livestock, Dairy, Poultry, Local Food Systems, and Food and Safety Subcommittee, and the Commodities, Risk Management, and Trade Subcommittee, so that we can support farmers and producers nationwide."
When she first joined the Senate in 2018, Sen. Smith fought for and secured a spot on the Senate Agriculture Committee because ag is the backbone of Minnesota's economy. All Minnesotans are impacted by the Farm Bill, and Sen. Smith heard from Minnesotans with backgrounds in farming, rural development, rural health, and nutrition to make sure that all voices were reflected in the final 5-year bill that passed in 2018 after she joined the Ag Committee. That legislation included many provisions that Sen. Smith authored and championed, including improvement to the dairy safety-net program, the legislative roadmap for the energy title, and improvement to USDA conservation programs. It also included many provisions that benefit Minnesota's native communities and new American communities, like permanent funding for beginning and traditionally under-served farmer outreach programs.
Sen. Smith has heard from farmers about the high cost of health care, including access to health care providers and access to mental health care resources, which is why Sen. Smith championed the creation of the rural health liaison at the USDA as well as funding for local mental health resources and to expand access to stress reduction and suicide prevention programs.
She also believes it's important to invest more in Greater Minnesota, and with her leadership post on the Rural Development and Energy Subcommittee, she will keep working to expand access to broadband and better infrastructure. Thousands of Minnesotans are employed in the ethanol and biodiesel industry, selling corn and soybeans to biofuel facilities and boosting the incomes of farmers around the state. Biofuels are good for energy security, for our environment, and for our economy, which is why Sen. Smith will keep advocating for a strong Renewable Fuel Standards (RFS) program. More broadly, rural areas have a huge opportunity to benefit economically and in terms of good jobs from the clean energy transition, including wind, solar, and other energy sources.
Read the original press release here.
Mar 10, 2021
U.S. ethanol production expanded nearly 11 percent the week ending March 5, according to data released by the U.S. Energy Information Administration on March 10. Fuel ethanol stocks were down nearly 2 percent.
Ethanol production for the week ending March 5 averaged 938,000 barrels per day, up 89,000 barrels per day when compared to the 849,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was down 106,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 22.07 million barrels the week ending March 5, down 355,000 barrels when compared to the 22.425 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 5 were down 2.264 million barrels.
Read the original story here.
Mar 11, 2021
Minneapolis, MN — A coalition representing automakers, biofuel producers, electric vehicle (EV) sector and conservation advocates is endorsing new bipartisan and bicameral legislation that would implement a clean fuels standard statewide in Minnesota.
The 26-member Minnesota Future Fuels Coalition is throwing its support behind the Future Fuels Act, which would direct the Commissioner of the Minnesota Department of Commerce with developing a rule to implement a clean fuels standard at the state level to achieve a 20 percent reduction in carbon intensity for all transportation fuel supplied in the state by the end of 2035.
The lead authors are Minnesota House of Representatives Assistant Majority Leader Todd Lippert (DFL) and Senate Energy and Utilities Finance and Policy Committee Chairman David Senjem (R). The bill will be discussed at a hearing today in the Minnesota House Energy and Climate Finance and Policy Committee.
The Minnesota Future Fuels Coalition, which is facilitated by the Great Plains Institute, has outlined a set of principles and benefits? underlying the Future Fuels Act and other efforts in the state to reduce greenhouse gas emissions from transportation fuels.
“Minnesota is behind schedule in achieving bipartisan transportation greenhouse gas reduction and clean fuel adoption goals and we believe that a clean fuels policy, such as the proposed Future Fuels Act, can help get the state back on track,” said ?Brendan Jordan, vice president for transportation and fuels at the Great Plains Institute?.
While clean fuels policies are in place in several jurisdictions already and statewide legislation is pending this year in New York, New Mexico, and Washington state, this is the first legislative effort to try to implement a statewide clean fuels standard in the Midwest. It is also notable for involving a diverse coalition intent on paving a new path for an all-of-the-above strategy to decarbonize transportation fuels.
The Future Fuels Act requires reductions in transportation greenhouse gas emissions but is technology and fuel neutral? and rewards a fuel’s greenhouse gas reduction based on actual performance. ?It would establish a process for evaluating the lifecycle greenhouse gas emissions from any transportation fuel and allow transportation fuel providers to compete in offering lower carbon fuels at lower cost.
Clean fuels are defined as any that have a lower carbon intensity than what is required in the standard, which can include electricity for transportation fuel, ethanol, biodiesel, renewable diesel, propane, renewable propane, renewable natural gas, hydrogen, sustainable aviation and others.
The Future Fuels Act establishes criteria for the Commissioner to follow in developing the rule, including broad economic development; reliance on domestically-produced fuels; equitable transportation electrification powered primarily with low-carbon and carbon-free power; air quality and public health; state solid waste recycling goals by facilitating credit generation from renewable natural gas produced from organic waste; voluntary efforts led by farmers to improve soil health and water quality in growing low-carbon clean fuel feedstocks; and protecting natural lands and expanding biodiversity.
“The Future Fuels Act is smart legislation that would reduce emissions from transportation fuels in Minnesota, support low-carbon biofuels and renewable electricity, and pave the way for a cleaner transportation future,” said ?Jeremy Martin, senior scientist and director of fuels policy at the Union of Concerned Scientists?. “By creating the first clean fuels standard in the region, the Future Fuels Act would deliver real benefits to Minnesota residents and provide a model to states around the country.”
"The Future Fuels Act helps to transition Minnesota towards a clean transportation future by providing a regulatory scheme aimed at reducing the carbon intensity of transportation fuels like gasoline and diesel," said ?Joel Levin, executive director of Plug In America?. "This policy helps to highlight the cleaner transportation options available to consumers, like electric vehicles."
"This coalition and legislation is a much-needed complement to the Governor’s Council on Biofuels and other efforts to ensure Minnesota as one of the nation's leaders in encouraging domestically-produced renewable ethanol and other clean transportation fuels that benefit our consumers, farmers and environment," ?Minnesota Bio-Fuels Association Executive Director Tim Rudnicki? said.
“At GM we recently announced a $27 billion investment in our EV programs, laying the foundation for our aspiration to eliminate tailpipe emissions from our light-duty vehicles by 2035. However, realizing this vision will require investments and commitments from all stakeholders, including a comprehensive public policy framework that helps build the EV market,” said Thomas Van Heeke, policy lead for mobility and climate change at General Motors?. “The Future Fuels Act can be a key part of that framework, creating new funding for EV purchase incentives while spurring investment in EV charging and fleet electrification. It has the potential to be a win-win for the environment and the economy and a model for others to follow.”
The Alliance for Automotive Innovation, which includes General Motors and other global-leading automakers and their suppliers, is also supporting the measure.
Other members of the Minnesota Future Fuels Coalition supporting the Future Fuels Act include the American Coalition for Ethanol, Amp Americas, Audi of America, BioMass Solution, Center for Energy and Environment, ChargePoint, Christianson & Associates CPA, Coalition for Renewable Natural Gas, Conservation Minnesota, Farmers Business Network, Fresh Energy, Low Carbon Fuels Coalition, Partnership on Waste and Energy, Renewable Fuels Association, Rivian, Sustainable Farming Corporation, Tesla, The Nature Conservancy, Universal Renewable Products, LLC and Xcel Energy.
About the Minnesota Future Fuels Coalition: ?The Minnesota Future Fuels Coalition, facilitated by the Great Plains Institute, is a broad coalition of stakeholders working together to implement the Minnesota Future Fuels Act, which is a clean fuels policy tailored to Minnesota. Coalition members include producers and marketers, electric utilities, environmental nonprofits, auto manufacturers, and agriculture and industry groups.
About Great Plains Institute (GPI):? As a nonpartisan, nonprofit organization, the Great Plains Institute works with diverse interests to transform the energy system to benefit the economy and environment. We combine our unique consensus-building approach, expert knowledge, research and analysis, and local action to work on solutions that strengthen communities and provide greater economic opportunity through the creation of higher-paying jobs, expansion of the nation’s industrial base, and greater domestic energy independence while eliminating carbon emissions.
Learn more at ?www.betterenergy.org?.
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Mar 9, 2021
The USDA maintained its forecast for 2020-’21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released March 9. The outlook for 2020-’21 corn supply, use and price were also unchanged.
The forecast for 2020-’21 corn planted area was unchanged at 90.8 million acres, up from 89.7 million acres in 2019-’20. Area harvested is expected at 82.5 million acres. Yield per harvested acre is expected at 172 bushels, up from 167.5 bushels in 2019-’20.
Corn production for 2020-’21 is expected at 14.182 billion bushels. An estimated 4.95 billion bushels of corn is expected to go to ethanol production in 2020-’21, up from 4.857 billion bushels in 2019-’20, but down from 5.378 billion bushels in 2018-’19.
The projected season-average farm price for corn is unchanged at $4.30 per bushel.
Foreign corn production is forecast higher with increases for India, South Africa, and Bangladesh that are partly offset by a decline for Mexico. India corn production is higher with increases to both area and yield. South Africa corn production is raised reflecting more favorable yield prospects.
Corn exports are raised for India, Vietnam, and South Africa. Imports are increased for Vietnam, Bangladesh, and the Philippines.
Foreign corn ending stocks for 2020-‘21 are higher, mostly reflecting increases for India, Vietnam, and Paraguay that are partly offset by reductions for Argentina and Mexico. Global corn ending stocks, at 287.7 million tons, are up 1.1 million from last month.
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